Unleashing American Energy Signing Event: Executive Orders

The below article is a summary of the Energy-related Executive Orders that have been issued this week by the Administration. Vinson & Elkins will provide a detailed substantive analysis of the Orders for clients in the coming days with more information.

(1) Strengthening the Reliability and Security of the United States Electric Grid

President Trump issued this Executive Order on April 8, 2025, for the purpose of ensuring adequate and reliable electric generation in America, to meet growing electricity demand, and address the national energy emergency declared on January 20, 2025 (EO 14156).

Section 3 outlines steps that the Secretary of Energy must take in the event of forecasted grid interruptions to prevent grid failure. These steps are to safeguard the reliability and security of the United States’ electric grid during such forecasted periods. The Secretary of Energy must streamline and expedite the Department of Energy’s processes for issuing Orders under Section 202(c) of the Federal Power Act. This expedited scheme incudes approving applications for electric generation facilities.

This Section also tasks the Secretary of Energy, within 30 days of this Order, with developing a methodology for analyzing current and anticipated reserve margins in the power system regulated by the Federal Energy Regulatory Commission. This methodology will be used to identify current and anticipated regions with reserve margins below acceptable thresholds, as identified by the Secretary of Energy. The methodology focuses on the following:

• Analyzing various grid operating scenarios to fully inform the methodology;
• Accrediting generation resources based on historical performance under each scenario; and
• Being published within 90 days of this Order.

Finally, the Secretary of Energy must establish a protocol to identify regional generation sources critical to system reliability using Section 202(c) of the Federal Power Act. This protocol must prevent an identified generation resource in excess of 50 megawatts of nameplate capacity from leaving the bulk-power system or converting the source of fuel (if conversion would result in reduction of generating capacity).

(2) Protecting American Energy from State Overreach

President Trump issued this Executive Order on April 8, 2025, for the purpose of ensuring an affordable and reliable domestic energy supply. This Order begins with stating the Trump administration’s commitment to removing illegitimate impediments to the identification, development, siting, production, investment in, or use of all domestic energy resources so that the United States can become “energy dominant” once again.  This Order identifies a number of strategies imposed by states (e.g., California, New York, etc.) that are irreconcilable with the Trump administration’s objective to unleash American energy.

One example identified by this Order is New York, which has passed a climate change law seeking to impose fines/compensatory payments on traditional energy producers for their contributions to greenhouse gas emissions across the world. This Order also identifies California’s “cap and trade” policy on carbon usage and trading. This Order proceeds to identify a number of other state laws, such as delay of permit application review and lawsuits against energy companies under tort regimes. This Order expresses that these laws weaken national security, undermine Federalism, dictate interstate and international disputes over natural resources, and impose retroactive fines without legitimate justification. For these reasons, it is the view of the Trump administration that these laws must not stand.

Section 2 instructs the United States attorney general (the “Attorney General”) to identify all state and local laws, regulations, causes of action, policies, production, or use of domestic energy resources that could be preempted by federal law, unconstitutional, or unenforceable (collectively further referred to as “illegal”). The Attorney General must prioritize laws pertaining to “climate change”; “environmental, social, and governance”; “environmental justice”; “greenhouse gas emissions”; and funds to collect carbon taxes.

This section further instructs the Attorney General to cease enforcement of state laws deemed to be illegal. The Attorney General must submit a report to the President and his Counsel identifying the state laws already terminated under this Order and recommending legislative action necessary for the remaining state laws determined to be illegal.

(3) Regulatory Relief for Certain Stationary Sources to Promote American Energy

President Trump issued this proclamation on April 8, 2025, for the purpose of ensuring coal-fired electricity generation is available to protect the security and reliability of the Nation’s grid. The goal of this proclamation is to create an exemption for certain stationary sources under the National Emissions Standard for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review, a Rule issued by the Environmental Protection Agency on May 7, 2024. This Rule amended the existing Mercury and Air Toxics Standards (MATS) to heighten compliance requirements.

The Rule imposes compliance standards and timelines on emissions-control technologies. The deadline to come into compliance with the Rule is July 8, 2027.  The Administration finds these emissions-control technologies to be not yet commercially viable and that imposing the current deadline for the Rule would lead to the risk of shutting down many coal-fired power plants. The closure of these plants would eliminate jobs, place the electrical grid at risk, and threaten broader economic and energy security impacts.

Thus, the Proclamation exempts certain stationary sources subject to the Rule (identified in Annex I) from compliance with the Rule for a period of two years beyond the initial compliance date. This period exempts these stationary sources from July 8, 2027 until July 8, 2029. The effect of the Proclamation is that during the period stated above, the stationary sources are only subject to the compliance obligations currently under the MATS without the heightened obligations of the Rule.

The Proclamation cites two reasons for the exemption. First, the Administration finds that the technology to implement the Rule is not available in a form sufficient to allow for compliance with the Rule by the deadline of July 8, 2027. Second, this exemption is in the national security interest of the United States.

(4) Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241

President Trump issued this Executive Order on April 8, 2025, to (i) secure the United States’ economic prosperity and national security, (ii) lower the cost of living, (iii) increase job opportunities, and (iv) provide for increased demand for electricity. The goal of this Order is to encourage and support the nation’s coal industry to the benefit of Americans and foreign allies.

Section 3 instructs the Chair of the National Energy Dominance Council (NEDC) to designate coal as a “mineral” under section 2 of Executive Order 14241 (issued March 20, 2025). Coal will thereby receive all benefits of a designated “mineral” under this Order.

Section 4 requires the Secretary of the Interior, Secretary of Agriculture, and Secretary of Energy to submit a report within 60 days to the President identifying coal resources and reserves on federal lands, assessing impediments to mining coal resources, and proposing policies to address such impediments.  The Secretary of Energy will add an analysis on the impact of the availability of coal on electricity costs and reliability.

Section 5 instructs the Secretary of the Interior and Secretary of Agriculture to prioritize coal leasing as the primary use for public lands with coal resources identified in the report referenced in Section 4. The Secretary of the Interior shall then acknowledge the end of the Jewell Moratorium with a notice in the Federal Register and process royalty rate reduction applications from federal coal lessees on an expedited process.

Section 6 requires the Administrator of the Environmental Protection Agency, the Secretary of Transportation, the Secretary of the Interior, the Secretary of Energy, the Secretary of Labor, and the Secretary of the Treasury to identify any guidance, regulations, programs, and policies within their agency or departments that seeks to transition the nation away from coal production. All heads to relevant executive departments shall consider revising or eliminating federal actions identified in the prior statement, within 60 days of this Order. Agencies that have the authority to make loans, loan guarantees, grants, equity investments or conclude offtake agreements shall rescind any policies or regulations discouraging investment in coal production.

Within 30 days of this Order, the Secretary of State, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Energy, the Chief Executive Officer of the International Development Finance Corporation, the President of the Export-Import Bank of the United States, and other agency heads with discretionary programs involved in energy projects shall review their regulations, policies, and processes to ensure that the agency is not discouraged from financing coal mining projects. Any identified preferences against coal use shall immediately be eliminated unless explicitly stated in statute.

Section 7 requests the Secretary of Commerce to take all necessary and appropriate actions to identify export opportunities for coal and facilitate international offtake agreements for domestic coal.

Section 8 requests each agency to identify to the Council on Environmental Quality any existing and potential categorical exclusions that could further the production and export of coal.

Section 9 requires the Secretary of Energy to determine whether coal or metallurgical coal used in the production of steel falls under the definition of “critical material” under the Energy Act of 2020 and, if so, to take steps to place coal on the Critical Materials list.

Section 10 requires the Secretary of the Interior, Secretary of Commerce, and the Secretary of Energy to identify regions where coal-powered infrastructure is available and suitable for supporting artificial intelligence (“AI”) data centers and expanding coal-based infrastructure to power data centers. Each of the identified agency heads must submit a report with their findings and proposals to the Chair of the NEDC, the Assistant to the President for Science and Technology, and the Special Advisor for AI and Crypto.

Section 11 requests the Secretary of Energy to take all necessary actions to accelerate the development and commercialization of coal technologies. The Secretary of Energy must also submit a detailed action plan to the Chair of the NEDC within 90 days of this Order. This plan must identify funding mechanisms, programs, and policy actions that will be taken to accelerate coal technology development.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.